Legal Briefs

Congress
President Obama signed the legislation repealing the extra 1099-MISC reporting requirement that was part of the healthcare reform law. The provision would have required businesses to provide 1099-MISCs to cover payments for goods valued over $600 in a calendar year.

Federal Reserve Board
The Federal Reserve issued a proposed rule that will require mortgage lenders to verify the member’s ability to repay a mortgage before making the loan and establish minimum mortgage underwriting standards. The revisions to Reg Z are per the Dodd-Frank Act. Comments are due by July 22, 2011.

The Fed updated their FAQ page. New questions and answers address the Federal Reserve’s roles and actions.

Washington State Division of Credit Unions
The Washington DCU issued Interpretive Letter I-11-02. This letter discusses the application of the “once a member, always a member” principle to former members who wish to rejoin the credit union but no longer meet the FOM requirements. The conclusion of the letter is that the “once a member, always a member” principle does not permit the re-instatement of a member who has terminated their membership and no longer meets the field of membership requirements in the bylaws.

Office of Foreign Assets Control
The OFAC SDN list was updated again. Last update April 20, 2011.

WA Legislature
The Washington State Legislature passed Substitute House Bill 1362. The bill makes significant changes to the home foreclosure process in Washington State. The effective date will be July 23, 2011.

OCC
The OCC issued Alert 2011-4. The alert highlights the need for banks and the technology service providers to take steps to ensure their enterprise risk management is sufficiently robust to protect and secure the bank’s own and their customers’ information from security breaches.

Questions? Contact the Compliance Hotline: 1.800.546.4465 or e-mail us at compliance@nwcua.org

Posted in Federal.